RealtyTrac, a source for comprehensive housing data, released its U.S. Foreclosure Market Report for October 2015, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 115,134 U.S. properties in October, an increase of 6 percent from the previous month, but still down 6 percent from a year ago.
The report also shows one in every 1,147 U.S. housing units with a foreclosure filing during the month.
The 6 percent monthly increase in overall foreclosure activity was caused primarily by a 12 percent jump in foreclosure starts, with 48,605 properties starting the foreclosure process for the first time in October. The October increase was the largest month-over-month increase since August 2011, when there was a 24 percent month-over-month increase.
Despite the month-over-month increase, foreclosure starts in October still were down 14 percent from a year ago.
“We’ve seen a seasonal increase in foreclosure starts in October for the past five consecutive years, so it’s not too surprising to see the monthly increase this October,” RealtyTrac Vice President Daren Blomquist said. “However, the 12 percent increase this October is more than double the average 5 percent monthly increase in the past five Octobers, and the even more dramatic monthly increases in some states are certainly a concern. The upward trend in foreclosure starts in those states in some cases could be an indication of fissures in economic fundamentals driving more distress and in other cases is more likely an indication of long-term delinquencies finally entering the foreclosure pipeline.”
October foreclosure starts increased from the previous month in 34 states, including California (up 21 percent), Florida (up 13 percent), New Jersey (up 15 percent), Illinois (up 20 percent), Maryland (up 300 percent), Washington (up 34 percent) and Michigan (up 37 percent).
Bank repossessions increase in 36 states
There were a total of 36,582 properties repossessed by lenders (REOs) in October, down 9 percent from the previous month but up 31 percent from a year ago — the eighth consecutive month with a year-over-year increase in REOs. Despite the annual increase, REOs in October are about one-third of their peak of 102,134 in September 2010. Through the first 10 months of 2015 there have been 369,920 completed foreclosures, up 33 percent from the same time period in 2014.
REOs increased from a year ago in 36 states in October, including New York (up 320 percent), New Jersey (up 275 percent), Texas (up 119 percent), North Carolina (up 89 percent), Nevada (up 83 percent), and Illinois (up 62 percent).
Those states that saw the most completed foreclosures for the month included Florida (5,760 REOs), California (2,697 REOs), Illinois (2,624 REOs), New Jersey (1,960 REOs) and Texas (1,776 REOs).
Scheduled auctions increase in 17 states
A total of 46,698 U.S. properties were scheduled for foreclosure auction during the month, up 12 percent from the previous month but down 22 percent from a year ago.
Scheduled foreclosure auctions — which can be foreclosure starts in some states — increased from a year ago in 17 states, including New York (up 47 percent), Massachusetts (up 45 percent), North Carolina (up 24 percent), New Jersey (up 17 percent) and Maryland (up 3 percent).
Maryland tops state foreclosure rates
A total of 5,126 Maryland properties had a foreclosure filing in October, up 100 percent from the previous month, but still down 14 percent from a year ago. After dropping out of the top five state foreclosure rates in September for the first time in 2015, Maryland’s foreclosure rate jumped to No. 1 in October thanks to the surge in foreclosure starts. One in every 466 Maryland housing units had a foreclosure filing in October, more than 2.5 times the national foreclosure rate.
New Jersey accounted for 7,559 properties receiving a foreclosure filing in October, a foreclosure rate of one in every 471 housing units — second-highest among the states after New Jersey’s foreclosure rate ranked No. 1 in September. New Jersey foreclosure activity in October decreased 4 percent from the previous month, but was still up 87 percent from a year ago — the eighth consecutive month with a year-over-year increase in New Jersey foreclosure activity.
One in every 579 Florida housing units received a foreclosure filing in October, the nation’s third-highest state foreclosure rate. Florida’s foreclosure rate has ranked in the top five each month in 2015. Florida foreclosure activity increased 8 percent from the previous month but was still down 23 percent from a year ago.
Nevada foreclosure activity decreased 6 percent from the previous month, but increased 1 percent from a year ago, giving the state the nation’s fourth-highest state foreclosure rate: one in every 593 housing units with a foreclosure filing.
Illinois foreclosure activity increased 21 percent from the previous month, and the state posted the nation’s fifth-highest foreclosure rate: one in every 680 housing units with a foreclosure filing.
For more information visit www.realtytrac.com.